RD cites FlexKort amid further Nordic reporting

Realkredit Danmark released its 2013 full year results on Friday, reporting a Dkr158m increase in net profit to Dkr2.612bn (Eu350m), up 6% compared with 2012. It said that this captures a positive trend in core activities as well as higher funding costs and higher impairments.

The mortgage credit institution’s new Cita loan launched in the autumn of 2013, FlexKort, contributed to positive developments in lending and market share despite declining mortgage activity, according to the group.

Michael Rasmussen,
Nykredit Realkredit

“Cheaper than an F1 loan, FlexKort is expected to become the future product of choice for borrowers favouring short interest reset intervals,” said Carsten Nøddebo, chairman of the executive board, at Realkredit Danmark. “FlexKort has received a warm welcome among customers, with FlexKort loans for Dkr12bn having been disbursed by the end of the year.

“This development supported the positive trend in our core business performance over the course of the year, which has resulted in a stronger market position.”

Nykredit Realkredit Group announced full year results last Thursday (06 February), with core income for the group increasing by 4% year-on-year to Dkr9.2bn compared with Dkr8.9bn in 2012. However, the group reported losses in its profit before tax, down 39% from Dkr3.1bn in 2012 to Dkr1.9bn in 2013.

Chief executive officer Michael Rasmussen noted that the group launched “Nykredit 2015”, a strategy to strengthen Nykredit’s competitiveness. One of the first initiatives within this strategy will be to provide one-tier mortgage loans subject to an LTV limit of 80% of secured homeowner loans through Nykredit and Totalkredit as a supplement to the existing two-tier mortgage loans.

Aktia Bank’s group operating profit for the final quarter of 2013 grew by 7% from Eu10.4m in 2012 to Eu11.1m, according to a report released by the group yesterday (Wednesday). Net income from commission over the three month period increased by 12% to Eu17.8m, but the Finnish group reported a decline of 7% in its net interest income compared with the previous year. Growth of 8% for the full year was reported in net commission income and a full-year decline of 4% was reported in net interest income.

An overall positive performance in the final three months of the year contributed to an end of year group operating profit of Eu65.4m, compared with Eu56m in 2012, according to the banking group.

“Aktia achieved a good result,” said Aktia CEO, Jussi Laitinen. “Commission income increased throughout the year and counterbalanced the negative effects of the low interest rates.”

Länsförsäkringar Bank released its 2013 figures on Monday, announcing a 36.7% growth in the bank’s fourth quarter operating profit, up from Skr128m in 2012 to Skr175m (Eu19.9m). Over the full year period operating profit was up 16.5% to Skr647m, compared with Skr555m in 2012.